A Beginner’s Guide To Understanding Employer’s Responsibilities For Nanny Taxes
It can be challenging to stay on top of housework, look after the children, and also carry out errands with our hectic lifestyles today. As a result, you might want to employ a nanny or other household employee to lend a helping hand around the home. It will help ensure that your house is sparkling and your family is happy.
However, before hiring staff to work in your house, it’s essential to do your research to stay on the right side of the Internal Revenue Service (IRS).
So, to assist you with a roadmap to make your life more efficient, Robert E. Mackey CPA LLC has put together a beginner’s guide to understanding employer’s responsibilities for nanny taxes. Through these comprehensive tips, you will feel confident about hiring household employees.
Verify work eligibility: Do background checks to confirm if the person you intend to hire is eligible to work for you. Use the Employee Form I-9 to confirm the identity and employment authorization of the individual.
Register staff: Once you hire a new employee to work in your home, make sure that you report them to the State within twenty days. Also, make sure you have applied for an Employer Identification Number.
Keep good records: Proper payroll reporting benefits both the employer and the employee. It reduces the risks to you and improves the employment history of your employee (including social security credits). So keep a ledger of hours worked and pay dates.
Submit all necessary filings: Make sure that you file documents accurately and promptly, as non-compliance can lead to fines and penalties and can also jeopardize future job prospects for the employee.
Advice From The Pros
Be professional: Treat this employment relationship just like you would for a small business. In this case, it’s the business of keeping your household running like a well-oiled machine, which gifts you the luxury of more time to spend with the family having fun.
Always be proactive: Whether it’s unemployment registration or workers’ compensation coverage, there are many things to consider, so it may be a good idea to work with a CPA. They will keep you on the right track and provide you with peace of mind.
At Robert E. Mackey CPA LLC, my goal is to exceed your expectations. As a leading certified public accountant in Grandview Heights, Ohio, you can feel confident about filing your returns with me. I specialize in income tax compliance, financial consultancy, and outsourced accounting services. My services are available across Upper Arlington, Columbus, Hilliard, Bexley, Gahanna, Westerville, Powell, Pickerington, Lancaster, and Delaware, to name just a few places.